A portfolio is a collection of investments, including stocks, bonds and commodities, used by individuals and businesses to increase their net worth. These financial instruments represent a bewildering array of costs, profits, time limits and interest rates. A portfolio analyst is a professional who can help investors sort out the details and make the best decisions.

Basics

Portfolio analysts, also called financial analysts or investment analysts, help companies and consumers buy or sell investments. These financial professionals study economic trends, evaluate historical performance, prepare written reports and recommend monetary instruments. Buy-side analysts develop portfolios for those wanting to invest. They can represent individuals or institutional investors such as mutual funds, nonprofit organizations or insurance companies. Sell-side analysts work for those selling investments, such as stock brokers or hedge funds. A small segment of analysts make no recommendations, and instead report on investments for business media. Portfolio analysts may specialize in a particular country, industry or investment type.

Qualifications

Those wanting to enter the profession must have good mathematical skills for evaluating investments, technical skills for using software to locate and analyze financial data, analytical skills for processing information, and communication skills for reporting on their findings. A bachelor’s degree is the minimum educational requirement; certain employers may demand a master’s degree for advanced positions. The Financial Regulatory Authority mandates licenses for some analyst positions. The licenses typically require employer sponsorship, so individuals must take the necessary exams after obtaining a position. Voluntary, non-sponsored certification is also available from national organizations such as the Certified Financial Analyst Institute.

Earnings

Portfolio analysts made an average of $42.18 per hour, or $87,740 per year, as of May 2011, according to the Bureau of Labor Statistics. The lowest earners received less than $22.26 per hour, or $46,300 per year, while the best paid made over $69.99 per hour, or $145,580 per year. Most worked for firms that also performed a variety of financial investment activities, including portfolio management services. They earned an average of $54.24 per hour, or $112,830 per year. The highest salaries were in advertising and public relations, with averages of $62.10 per hour, or $129,160 per year.

Outlook

The BLS predicts that employment for portfolio analysts will increase by 23 percent from 2010 to 2020. This is better than the 17 percent seen for all business and financial occupations and the 14 percent for all jobs in all industries. The growth in different types of investment products and the number of countries producing investments will fuel much of the demand. Competition will be strong for these high-paying positions. Currently more people want to enter the profession than there are jobs; the best prospects will be for those who have graduate degrees and certifications.

About the Author

Aurelio Locsin has been writing professionally since 1982. He published his first book in 1996 and is a frequent contributor to many online publications, specializing in consumer, business and technical topics. Locsin holds a Bachelor of Arts in scientific and technical communications from the University of Washington.